You have new items in your feed. Click to view.
Question and answer
If the inflation rate in 1996 was tripled and the house price index was only affected by inflation, what would be the House Price Index Outside the Capital starting in 1997?
Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. The price increases that result from the rapid [ money creation creates a vicious circle, requiring ever growing amounts of new money creation to fund government activities. Hence both monetary
inflation and price inflation proceed at a rapid pace. Such rapidly increasing prices cause widespread unwillingness of the local population to hold the local currency as it rapidly loses its buying power. Instead they quickly spend any money they receive, which increases the velocity of money flow; this in turn causes further acceleration in prices.[6] This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.[7] Governments have sometimes resorted to excessively loose monetary policy, as it allows a government to devalue its debts and reduce (or avoid) a tax increase. Inflation is effectively a regressive tax on the users of money,[8] but less overt than levied taxes and is therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months later. ]
Expert answered|dkecter|Points 50|
Question
Asked 11/18/2012 2:10:51 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
26,555,735 questions answered
Popular Conversations
a legislative body is a User: motif
Weegy: A motif is a narrative element with symbolic meaning that repeats throughout a work of literature. User: ...
12/2/2016 10:58:45 AM| 2 Answers
What is a flexible exchange rate based on
12/2/2016 12:22:25 AM| 1 Answers
The amount of water vapor in the air is known as the
Weegy: Water vapor is water in a vaporous form diffused in the atmosphere but below boiling temperature.
12/2/2016 1:46:03 AM| 1 Answers
Hindering Latin American development was the fact that Latin American ...
Weegy: Hindering Latin American development was the fact that Latin American countries was slow economic growth.
12/2/2016 3:13:04 AM| 1 Answers
Weegy Stuff
S
Points 142 [Total 414] Ratings 1 Comments 132 Invitations 0 Offline
S
P
P
Points 21 [Total 700] Ratings 0 Comments 21 Invitations 0 Online
S
P
P
L
Points 18 [Total 1611] Ratings 0 Comments 18 Invitations 0 Offline
S
Points 18 [Total 450] Ratings 0 Comments 18 Invitations 0 Offline
S
Points 17 [Total 17] Ratings 0 Comments 17 Invitations 0 Online
S
Points 16 [Total 292] Ratings 0 Comments 16 Invitations 0 Offline
S
Points 10 [Total 32] Ratings 0 Comments 0 Invitations 1 Offline
S
Points 8 [Total 8] Ratings 0 Comments 8 Invitations 0 Offline
S
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
S
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.